Google has invested more than $21 billion in its Internet infrastructure since the company began building its own custom data centers in 2006.
Getting into cloud (whether running your own to support your business as Google does, or as a provider for others) is very expensive. But like meatspace utilities, once you’ve sunk all that capital, it’s a giant moat that others are less willing to cross. A young Mr. Burns seems like he’s burning cash, but an old Mr. Burns is the baron of the town and, seemingly, lives forever.
With autumn, we begin the new round of tech announcements, the way Detroit used to announce next year’s car models. What you should look for is how the old guard adapts to the cloud, and how the new guys aim to consolidate disparate offerings and win trust.